Dec. 6 (Bloomberg) -- Company bonds handed investors the
biggest loss in six months in Europe this week on concern
borrowing costs will rise as the Federal Reserve starts paring
stimulus.

Investment-grade notes in euros forfeited an average 0.6
percent this week, the most since the period ended June 21,
according to Bloomberg bond index data. The average yield on the
debt jumped six basis points to a seven-week high of 1.9
percent, the data show.

Investors are withdrawing from global bond markets on
speculation a strengthening U.S. recovery will spur the Fed to
scale back asset purchases before the end of the year. American
employers added 185,000 workers last month, putting payroll
gains on track for the best year since 2005, according to
economists surveyed by Bloomberg before data due today.

“Everyone is getting excited about the job numbers looking
stronger,” said Simon Ballard, head of credit strategy at
National Australia Bank Ltd. in London. “Investors are worried
the Fed will start to taper its bond buying even this month and
that’s pushing up yields around the globe.”

The cost of insuring corporate bonds rose for the first
time in six weeks, with the Markit iTraxx Europe index of
credit-default swaps on 125 investment-grade companies climbing
3.8 basis points this week to 83 basis points, the highest since
Nov. 13.

Microsoft Corp. led 23 billion euros ($31 billion) of
corporate issuance in Europe, up from 15.6 billion last week,
according to data compiled by Bloomberg. The Redmond,
Washington-based company issued 3.5 billion euros of notes as
part of an $8 billion sale in dollars and euros, a record
offering from the world’s largest software maker, the data show.